Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 14, Problem 21E
To determine
Calculate the present value of the bonds payable.
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Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued $70,000,000 of three-year, 11% bonds at a market (effective) interest rate of 13%, with interest payable semiannually. Compute the following:
a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 5 and Exhibit 7. Round to the nearest dollar
b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar
c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar
d. The amount of the bond interest expense for the first year. Round to the nearest dollar.
Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued $80,000,000 of five-year, 9% bonds at a market (effective) interest rate of 12%, with interest payable semiannually. compute the following, presenting figures used in your computations:
a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibits 8 and 10. Round to the nearest dollar.
Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $25,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%.
Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar.
Chapter 14 Solutions
Financial Accounting
Ch. 14 - Describe the two distinct obligations incurred by...Ch. 14 - Explain the meaning of each of the following terms...Ch. 14 - If you asked your broker to buy you a 12% bond...Ch. 14 - A corporation issues 26,000,000 of 9% bonds to...Ch. 14 - If bonds issued by a corporation are sold at a...Ch. 14 - Prob. 6DQCh. 14 - Bonds Payable has a balance of 5,000,000, and...Ch. 14 - What is a mortgage note?Ch. 14 - Fleeson Company needs additional funds to purchase...Ch. 14 - In what section of the balance sheet would a bond...
Ch. 14 - Prob. 1PEACh. 14 - Brower Co. is considering the following...Ch. 14 - On January 1, the first day of the fiscal year, a...Ch. 14 - On January 1, the first day of the fiscal year, a...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - Prob. 4PEACh. 14 - Prob. 4PEBCh. 14 - On the first day of the fiscal year, a company...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - Prob. 6PEACh. 14 - Prob. 6PEBCh. 14 - A 1,500,000 bond issue on which there is an...Ch. 14 - Prob. 7PEBCh. 14 - On the first day of the fiscal year, a company...Ch. 14 - On the first day of the fiscal year, a company...Ch. 14 - Berry Company reported the following on the...Ch. 14 - Averill Products Inc. reported the following on...Ch. 14 - Domanico Co., which produces and sells biking...Ch. 14 - Prob. 2ECh. 14 - Prob. 3ECh. 14 - Prob. 4ECh. 14 - Thomson Co. produces and distributes...Ch. 14 - On the first day of its fiscal year, Chin Company...Ch. 14 - Prob. 7ECh. 14 - Adele Corp., a wholesaler of music equipment,...Ch. 14 - Emil Corp. produces and sells wind-energy-driven...Ch. 14 - On the first day of the fiscal year, Shiller...Ch. 14 - On January 1, Year 1, Luzak Company issued a...Ch. 14 - On January 1, Year 1, Bryson Company obtained a...Ch. 14 - Prob. 13ECh. 14 - The following data were taken from recent annual...Ch. 14 - Loomis, Inc. reported the following on the...Ch. 14 - Prob. 16ECh. 14 - Tommy John is going to receive 1,000,000 in three...Ch. 14 - Prob. 18ECh. 14 - Prob. 19ECh. 14 - Prob. 20ECh. 14 - Prob. 21ECh. 14 - Prob. 22ECh. 14 - Prob. 23ECh. 14 - Prob. 24ECh. 14 - Prob. 25ECh. 14 - Boyd Co. produces and sells aviation equipment. On...Ch. 14 - Prob. 1PACh. 14 - On July 1, Year 1, Danzer Industries Inc. issued...Ch. 14 - Campbell Inc. produces and sells outdoor...Ch. 14 - The following transactions were completed by...Ch. 14 - On July 1, Year 1, Danzer Industries Inc. issued...Ch. 14 - Campbell, Inc. produces and sells outdoor...Ch. 14 - Prob. 1PBCh. 14 - On July 1, Year 1, Livingston Corporation, a...Ch. 14 - Rodgers Corporation produces and sells football...Ch. 14 - The following transactions were completed by...Ch. 14 - On July 1, Year 1, Livingston Corporation, a...Ch. 14 - Rodgers Corporation produces and sells football...Ch. 14 - CEG Capital Inc. is a large holding company that...Ch. 14 - Prob. 3CPCh. 14 - Prob. 4CPCh. 14 - Xentec Inc. has decided to expand its operations...Ch. 14 - You hold a 25% common stock interest in YouOwnIt,...Ch. 14 - The following financial data (in thousands) were...
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